"Specifically, it will address growing traffic congestion at the intersection and long vehicle queues at certain times of the day.
"Traffic is often backed up past two nearby schools creating additional safety hazards in the area."
The council will need parts of the frontages of six properties to complete the upgrade and has budgeted $2.39 million for the job, including land purchases and construction costs.
Mr Dine said the council had already purchased three of the frontages required for the job.
Work was not scheduled to go ahead in the next few years.
The New Zealand Transport Agency would contribute 57 per cent of the total cost.
There was plenty of support for the proposal from those living and working in the area.
Brew Time owner Gary Treloar said he'd like to see the road upgraded.
"The biggest problem is the paranoid parents dropping off and picking up their kids.
"I really don't know why they can't let them walk to school.
"At 3pm, the traffic is diabolical around here with so many schools in the area," Mr Treloar said.
One Malfroy Rd resident, who preferred not to be named, said she welcomed the proposal but wondered why it would take so long to implement.
She said parents from a number of schools - Westbrook Primary, St Mary's, Rotorua Intermediate, John Paul College and Rotorua Girls' High School - would drive their children to the school gate every day causing unnecessary congestion.
"Children can still walk to school can't they?
"There are very long queues both ways down Malfroy Rd every day.
"And there's lots of heavy traffic driving through like big logging trucks.
"But why do we have to wait eight years?" she asked.
Courier driver Haozhi Zhang said there were traffic problems at the intersection but only during school drop-offs and pick-ups.
"At 3pm, it's very busy. Having more lanes would be good for the traffic.
"At other times it's fine," he said.